Company News

Pot producer CannTrust's license to produce, sell cannabis suspended

Sept 17 (Reuters) - Troubled Canadian pot grower CannTrust Holdings Inc said on Tuesday its license to produce and sell cannabis has been suspended by Health Canada.

CannTrust had delayed its second-quarter results last month awaiting a decision from Canada’s health regulator on a large amount of inventory put on hold after discovery of illegal cultivation by the company.

Last month, Health Canada found fault with cannabis production at a second CannTrust Holdings Inc facility, a month after the regulator froze sales of several tonnes of marijuana grown at another one of its Ontario operations.

Since Health Canada found the unlicensed pot cultivation, CannTrust fired Peter Aceto as chief executive officer, while Eric Paul resigned as chairman.

The company had said in July it was exploring a possible sale.

On Tuesday, CannTrust said its management and board were reviewing the notice with the company’s counsel and other advisers. (Reporting by Arundhati Sarkar and Debroop Roy in Bengaluru; Editing by Shounak Dasgupta)